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At a time of flexible working and increasing propensity among youth to diversify their careers and maximise their wealth, any advice can be of great help. In a recent interview, Nikhil Kamath co-founder of Zerodha and TrueBeacon offered his advice to youth who are looking forward to building their careers and securing their financial future.
The 34-year-old also went on to divulge some lesser-known details about his career trajectory. Kamath was speaking to management consultant-turned-content creator Sharan Hegde in an exclusive interview where he opened up about his career and offered advice to the youth.
The influencer said that most of his audience are from the top five metro cities and who start with a salary of Rs 30,000-40,000 per month. According to Sharan, during the initial phase of their careers, most people don’t think about investing. Highlighting the difference between investments made by those making Rs 12 lakh a year and those earning a few crores the influencer went on to ask Kamat his advice for the youth.
What is your advice for someone who is making Rs 12 lakh per year?
“When I started working some 18 years ago, notwithstanding the inflation back then, I think my pay must have been Rs 8,000 a month. Where you live and how you live, kind of define how much money you need to earn. So first advice, if you can work from home and you are leaving in an expensive city like Mumbai, Delhi, Bangalore, it might be prudent to go out and explore a tier 2 town,” said Kamath.
According to the entrepreneur, moving back to cities which are not as expensive takes away the proximity to the office and dramatically impacts one’s cost of living as well as the environment.
The billionaire said that any 27-year-old earning Rs 12 lakh a year shows an appetite for risks at a significant level. They are likely to see an uptick in how much money they make at least in the next decade.
Investment Wisdom
Kamath who revealed that he is fairly conservative and a little bit of a pessimist when it comes to investing said that putting 20-30 per cent of one’s income in equity, another 30-40 per cent in asset classes which don’t have too much risk such as gold, fixed income, tax-free bonds, corporate debt funds, etc, was a great way to invest. “The balance, I think, should be a mixture of maybe some real estate, and some kind of liquid saving which you can have access to at any point of time,” he said.
The Zerodha co-founder also highlighted the futility of arbitrary money with reference to the Covid-19 outbreak. He said that liquid money is vital and that everyone should keep them to account for emergencies.
According to Kamath, someone who is in their mid-20s, to build their foundation, they should understand how to geographically arbitrage themselves. Essentially, move to a cheaper location, save money; work on their future financial goals.
In the same interview, Kamath shared his thoughts on hedge funds, cryptocurrencies, DeFi Projects, his side projects, and the five people he surrounds himself with.
Content Creation Is The Next Big Thing
When asked what will be the next big thing, Kamath said that content creation will be the next big thing. “Marketing is a constant in business through time and there have been different means of marketing. And whenever you can catch an industry when it is transitioning from A to B, you often end up catching the inflection point if you are doing something right. I think content creators are not just for entertainment, branding or news consumption. In many ways content creation will become so relevant tomorrow,” he said.
The 34-year-old also went on to divulge some lesser-known details about his career trajectory. Kamath was speaking to management consultant-turned-content creator Sharan Hegde in an exclusive interview where he opened up about his career and offered advice to the youth.
The influencer said that most of his audience are from the top five metro cities and who start with a salary of Rs 30,000-40,000 per month. According to Sharan, during the initial phase of their careers, most people don’t think about investing. Highlighting the difference between investments made by those making Rs 12 lakh a year and those earning a few crores the influencer went on to ask Kamat his advice for the youth.
What is your advice for someone who is making Rs 12 lakh per year?
“When I started working some 18 years ago, notwithstanding the inflation back then, I think my pay must have been Rs 8,000 a month. Where you live and how you live, kind of define how much money you need to earn. So first advice, if you can work from home and you are leaving in an expensive city like Mumbai, Delhi, Bangalore, it might be prudent to go out and explore a tier 2 town,” said Kamath.
According to the entrepreneur, moving back to cities which are not as expensive takes away the proximity to the office and dramatically impacts one’s cost of living as well as the environment.
The billionaire said that any 27-year-old earning Rs 12 lakh a year shows an appetite for risks at a significant level. They are likely to see an uptick in how much money they make at least in the next decade.
Investment Wisdom
Kamath who revealed that he is fairly conservative and a little bit of a pessimist when it comes to investing said that putting 20-30 per cent of one’s income in equity, another 30-40 per cent in asset classes which don’t have too much risk such as gold, fixed income, tax-free bonds, corporate debt funds, etc, was a great way to invest. “The balance, I think, should be a mixture of maybe some real estate, and some kind of liquid saving which you can have access to at any point of time,” he said.
The Zerodha co-founder also highlighted the futility of arbitrary money with reference to the Covid-19 outbreak. He said that liquid money is vital and that everyone should keep them to account for emergencies.
According to Kamath, someone who is in their mid-20s, to build their foundation, they should understand how to geographically arbitrage themselves. Essentially, move to a cheaper location, save money; work on their future financial goals.
In the same interview, Kamath shared his thoughts on hedge funds, cryptocurrencies, DeFi Projects, his side projects, and the five people he surrounds himself with.
Content Creation Is The Next Big Thing
When asked what will be the next big thing, Kamath said that content creation will be the next big thing. “Marketing is a constant in business through time and there have been different means of marketing. And whenever you can catch an industry when it is transitioning from A to B, you often end up catching the inflection point if you are doing something right. I think content creators are not just for entertainment, branding or news consumption. In many ways content creation will become so relevant tomorrow,” he said.
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